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When going remote you don't get to avoid the California state taxes for the year, will never avoid it for current granted-but-unvested RSUs, and won't avoid the
by opportune 6y ago
When going remote you don't get to avoid the California state taxes for the year, will never avoid it for current granted-but-unvested RSUs, and won't avoid them in the future unless you get your employer to actually change your employment to the new state (not exactly sure what the process is here, but I know my 'desk' is in CA so I have to pay taxes there). So this doesn't apply to the many people in the technology industry leaving CA to take advantage of temporary remote work
- nemo44x 6y agoThis is about to get interesting. Similar story to NYC in that they go after people that move to NJ or CN, work from home and choose to pay taxes to the state they live and work in. NY claims they are choosing convenience and because their office is in NYC they need to pay taxes there. So states like NJ miss out on a lot of revenue. There are local politicians in NJ now talking about this. With so many commuters possibly not going back to an office there’s potentially a few billion in tax revenues at stake. Most states have reciprocal deals with neighboring states so that you pay taxes where you live even if you work in the adjacent state. NY does not and for obvious reasons. California either and I’ve heard California will claim your owe taxes even if you move far away but the company only has an office in CA. As reports of these states chasing down money that is arguably not theirs gets around it will be interesting to see if congress acts. Especially if CA’s wealth tax happens which they claim will tax any wealth over a threshold even after you’ve been out of state for years.